Represents the weighted average cost of capital (WACC). Provides calculation WACC, although it was designed to mislead the students. Thus, their task is to define and explain the "errors" in the analysis, which are designed to highlight the conceptual issues concerning the WACC and its components. Such issues are often misunderstood by students. It is assumed that the students were exposed to WACC, CAPM, the dividend discount model, and the model of income capitalization.
This Darden study. "Hide
by Robert F. Bruner, Jessica Chan Source: Darden School of Business 8 pages. Publication Date: October 10, 2001. Prod. #: UV0010-PDF-ENG
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